IdentificationA long white day is followed by a second long white day that closes higher than the first. The third white day gaps above the second and becomes a white spinning top or Doji.

The Psychology
The first two white days say “full speed ahead” as the stock appears strong and in a solid uptrend. But the gap up and failure to rally much suggests that the strength may be waning. This isn't necessarily bearish, but it's certainly less bullish, so stops are raised, or profits taken on long positions.

Deliberation formations are not for the light of heart because you are essentially shorting a strong stock. Here you can see AT&T rally strongly on high volume. The third white day (which was small) hinted that the buyers may be getting tired. A good trader would wait until the next day to short the gap down at the open…or the pattern could simply be used as an exit strategy for an existing long position.

Again, it's hard to short a stock as strong as VXGN was in this bearish Deliberation pattern, but its formation could offer an exit strategy if you are long.